Make Money from Money

A money market account is an account on which money is deposited into and has a higher interest rate as compared to what is realized on a saving account. The account requires little or no warning or an advance notice before withdrawing money from it. Actually it works similarly to checking account where the account holder can deposit or withdraw money at any time without informing the bank of their intentions. However, a money market account is not a checking account as the money deposited in it receives interest and it’s just like a saving account in which a check can be written upon it. Some financial institutions issue debit cards for the money market account which can be used to withdraw money swiftly from the accounts without the need of going to banking halls to make the withdrawals. Furthermore, money market funds are FDIC insured, meaning that even if something happens to the bank where the depositor has deposited their money, the client is assured of getting it back in full.

With money market accounts, the bank or the financial institution puts limits on the amount of money that can be withdrawn at any particular time. This is the main reason why they give out higher interest rates as compared to a normal saving account. Nevertheless, it is important to talk to the bank about the way their accounts earn interest before deciding to open any of the accounts. If your interest is to earn money as quickly as possible on the deposited amounts, then a money market account is the best way to go. However, just remember that the more you deposit, the more you earn in form of interests and the vice versa is true.

A normal saving account is very similar to a money market account as they both provide protection to monies deposited by an account holder for a rainy day. Both accounts assist the account holder to save money that had not been assigned to any specific use for future utilization when a need arises. Moreover, the majority of financial institutions provide both these account as a way of assisting the account holder manage their personal finances satisfactorily. To help understand the way these two accounts operate, below is an analysis of each one of them.

A conventional savings account acts as a holding place for a depositor’s money before it could be utilized. The bank pays a little interest for leaving the money in the savings account for a long duration of time. The similarity between a saving account and a money market account is that both hold money that the depositor doesn’t need to access immediately. Normally the account has a minimum deposit which the bank requires to be kept at all times. This minimum deposit requirement differs from one financial institution to the other. These ranges from the regular saving accounts to what the banks calls a platinum saving account, retirement accounts and money market accounts. With each, different fees, balances and deposits are required. So before settling for a specific saving account, find the one that suits your specific financial and saving requirements.

Saving money either in a money market account or a saving account is a great way of saving for a rainy day. In addition, nowadays, most financial institutions offer the client with an option of opening a savings account or a money market account through the net, or online for that matter. Once the client has opened an account, they are able to have a complete control over their money instantly. The major advantage of an online saving account or an online money market accounts is that the client is able to perform their banking endeavors right in the comfort of their homes or their offices. It also reduces the regular trips to the banking hall.

A money market account is a type of a saving account that limits the amounts of money that can be withdrawn after reaching a certain limit that the bank allows. The account also earns higher interest rates as compared to a regular saving account which earns minimum interest. The two accounts are a great way of enhancing a client’s financial wellness. Both accounts are FDIC backed which means the client’s money is generally safe from catastrophes that may befall a financial institution.

A certificate of deposit is usually shortened to the abbreviation CD. So how does a bank CD work? First, the individual obtaining the CD goes to the bank they have chosen and deposits funds into their CD account through their account representative. Before doing this, however, you should shop around to see which bank has the highest interest rate, as the rates do vary from bank to bank. The interest rates are based upon the current rates of money markets. A CD is in the low-risk category of investments. The average duration until certificate of deposit maturity can range between one year and five years. During this time, a fixed interest rate is applied to the deposit. If you set up a certificate of deposit then withdrawal funds from the account prior to maturity, penalties will be applied. These penalties will be large enough to take away any return that you may have earned. Therefore, you should never withdrawal money from a CD unless you have a financial emergency and no other means of attaining the needed funds.

If you are seeking a safe, low-risk investment then a certificate of deposit is the way to go. Use money that you will not need to access in the near future, and shop around for a bank with the highest interest rate. A CD is not going to make you as much money as stocks or bonds, but you will earn money with much less risk involved. A certificate of deposit is ideal for anyone looking for a safe investment. They make great gifts for children and grandchildren. And, they are good for rounding out a portfolio that contains investments of varying risk levels.